Apple recently announced that app pricing is going up in the UK and various other countries. It is related to the change in currency volatility and Value Added Tax. The new changes will apply to all apps and in-app purchases through app stores.
Apple announced this change through a post on the Apple developer’s website.
Countries that will see a price increase
- Colombia
- Egypt
- Hungary
- Nigeria
- Norway
- South Africa
- United Kingdom
Also, in Uzbekistan, the prices in the app store will be decreased due to a reduction in Value Added Tax in the country.
Credit: Brett Jordan / Pexels
Apple also mentions on the website that while the prices in Ireland, Luxembourg, Singapore and Zimbabwe aren’t changing, the proceeds will be adjusted to reflect these tax changes:
- Ireland: Reduction of the value-added tax rate on electronic newspapers and periodicals from 9% to 0%
- Luxembourg: Reduction of the value-added tax rate from 17% to 16%
- Singapore: Increase of goods and services tax rate from 7% to 8%
- Zimbabwe: Increase of value-added tax rate from 14.5% to 15%
Also, even though consumers won’t see an increase in app prices in Cambodia, Kyrgyzstan, Indonesia, Singapore, South Korea, Tajikistan, and Thailand, the developers will see a higher share of income starting in January end.
Apple says developers will see a change in My Apps, and developers can choose to change the pricing of apps and in-app purchases if they want.
New 900-point pricing system
It was previously announced that Apple would be adding additional 700-point price points to the price of apps and in-app purchases, making the total price points 900. It will start to come into effect by spring 2023.
With that in effect, if a developer chooses, the app prices and in-app purchases can come to as low as $0.29.